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Open Access
Article
Publication date: 22 June 2023

Thanh Cong Nguyen and Thi Linh Tran

This paper examines the political budget cycles in emerging and developing countries using a sample of 91 countries from 1992 to 2019.

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Abstract

Purpose

This paper examines the political budget cycles in emerging and developing countries using a sample of 91 countries from 1992 to 2019.

Design/methodology/approach

This paper employs a pooled ordinary least squares (OLS) model with clustered standard errors at the country level. To address endogeneity issues, the authors also employ a two-step system generalized methods of moments model.

Findings

The authors find clear evidence of political budget cycles in emerging and developing countries. The authors consistently find that incumbents increase total government spending, particularly in economic affairs, public services and social welfare, in the year before an election and the election year. In contrast, they contract spending in the year after an election.

Research limitations/implications

Policymakers should be aware of the political budget cycles during election years. Promoting control of corruption and democracy helps to alleviate the effects of the political budget cycles in emerging and developing countries.

Originality/value

The authors are among the first to explore the political budget cycles in emerging and developing countries by focusing on the total government spending and its main compositions, including expenditures on economic affairs, public services and social welfare. Besides, the authors also explore the conditioning effects of control of corruption, political ideology and democracy.

Details

Journal of Economics and Development, vol. 25 no. 3
Type: Research Article
ISSN: 1859-0020

Keywords

Book part
Publication date: 1 March 2021

Dewi Darmastuti and Dyah Setyaningrum

This study aims to investigate the use of discretionary spending, especially by incumbents, to win the election and whether incumbents can take more advantage of such spending

Abstract

This study aims to investigate the use of discretionary spending, especially by incumbents, to win the election and whether incumbents can take more advantage of such spending than the new local government heads. This study also examines the political monitoring effect in suppressing discretionary spending. By using panel regression on 225 local governments during 2013–2016, the results indicate that political motive positively affects discretionary spending proportion ahead of the election. Following the public choice theory that although local government heads act on the interests of voters, their primary motivation is personal interest. Incumbent’s victory does not affect total discretionary spending and the financial assistance expenditure/transfer but has a significant positive effect on grant and social assistance spending. It generally supports Corruption Eradication Commission’s allegations of “returning the favor” is carried out by elected heads in one year following the election. But, it shows that incumbents are more able to utilize grants and social assistance spending than the new local government heads. Political monitoring from the opposition party has proven to have a direct negative effect on discretionary spending proportion. Tracking of the one year after the election should be done to prevent misuse of discretionary spending for incumbent political interests. The results of this study are expected to provide input to regulators to develop more comprehensive regulation, for example, strict sanctions for violations related to accountability for the use of such funds to limit the opportunistic behavior of the local government heads.

Details

Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics
Type: Book
ISBN: 978-1-83867-359-8

Keywords

Book part
Publication date: 1 March 2021

Hidayah Asfaro Saragih and Dyah Setyaningrum

The purpose of this study is to examine the effect of local government spending on local government financial performance. Furthermore, this study also investigates the moderating…

Abstract

The purpose of this study is to examine the effect of local government spending on local government financial performance. Furthermore, this study also investigates the moderating role of re-election on the relationship between local government spending and the financial performance for all local government and dynastic local government. The hypotheses are analyzed using multiple regression with fixed effect using two groups of samples: all local governments and dynastic local governments from 2010 to 2015. The result shows that local government spending positively affects local government financial performance, but in dynastic local government, spending has negative effect on financial performance. Moreover, this study proves that re-election strengthens the positive effect of local government spending on local government financial performance in all sample and weaken the negative effect of spending on financial performance in dynastic local government. The finding of this study is very useful for the central government in terms of policy formulation and mechanisms to limit the practice of political dynasty.

Details

Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics
Type: Book
ISBN: 978-1-83867-359-8

Keywords

Book part
Publication date: 24 October 2017

Benjamin Bricker

This chapter examines the role that Citizens United v. FEC (2010) has played in shaping the current system of election spending in the United States. In Citizens United, the Court…

Abstract

This chapter examines the role that Citizens United v. FEC (2010) has played in shaping the current system of election spending in the United States. In Citizens United, the Court determined that individual rights to speech and expression can flow into the corporate entities they join. This chapter argues that the Court’s holding serves to redirect the focus of accountability away from those who seek to sway election outcomes through massive election spending and toward any efforts by government to regulate that type of spending. The practical result has been to allow for the creation of new organizations that can take in unlimited amounts of money while also effectively hiding the source of funds from disclosure. By muddying the waters of disclosure, these new entities – Super PACs and dark money organizations – lower the ability of citizens to maintain accountability over the electoral system. Finally, this chapter examines ways to encourage greater disclosure and accountability in government after Citizens United.

Details

Corruption, Accountability and Discretion
Type: Book
ISBN: 978-1-78743-556-8

Keywords

Article
Publication date: 1 March 2007

Tracy Roof

Unions representing 40 percent of union membership broke away from the AFL-CIO in 2005 to form a rival federation, Change to Win (CTW). CTW leaders argued that the AFL-CIO placed…

Abstract

Unions representing 40 percent of union membership broke away from the AFL-CIO in 2005 to form a rival federation, Change to Win (CTW). CTW leaders argued that the AFL-CIO placed too much emphasis on politics and too little on organizing new workers. This study looks at the potential impact of the split on laborʼs political action in lobbying and electoral mobilization. It examines differences between Change to Win and AFL-CIO affiliates in their political action committee spending, their support of Democrats, and their overall political spending on lobbying and electoral mobilization and concludes that CTW unions are no less reliant on political action than AFL-CIO unions and are likely to continue their involvement in politics.

Details

International Journal of Organization Theory & Behavior, vol. 10 no. 2
Type: Research Article
ISSN: 1093-4537

Book part
Publication date: 7 November 2022

Joseph N. Patten

During the 2020 election cycle, 2,276 super PACs spent over $2.1 billion in federal elections. This chapter argues that changes made to the US campaign finance system brought…

Abstract

During the 2020 election cycle, 2,276 super PACs spent over $2.1 billion in federal elections. This chapter argues that changes made to the US campaign finance system brought about by the Citizens United v. FEC (2010) and SpeechNow.org v. FEC (2010) cases have destabilized the American political system by fueling tensions between right-wing and left-wing populist factions and by contributing to congressional corruption. By moving away from the political corruption standard and toward the free speech standard in Citizens United, polarizing wealthy mega-donors and dark money sources have come to play a dominant role in congressional elections. These cases also helped to contribute to a two-tiered campaign finance regulatory structure that distinguishes between campaign contributions given directly to federal candidates and political money contributed to super PACs to support or oppose federal candidates. In the 2020 congressional elections, PACs and super PACS outspent both major party candidates combined in 35 House and Senate races. Super PACs are serving as “shadow parties” by targeting competitive races for the purpose of swaying partisan control of Congress. This study also shows that an exceedingly high percentage of super PAC money is spent on negative advertising that further divides rather than unifies the nation. This chapter also highlights the corrupting influence of congressional leadership PACs and examines how super PACs have enabled foreign and dark money sources to illegally influence congressional campaigns.

Article
Publication date: 14 February 2023

Clement Adamba

Using a political economy framework, this paper examines the financing trend, by investigating three systematic spikes occurring between 2004 and 2016. The study aims to provide a…

156

Abstract

Purpose

Using a political economy framework, this paper examines the financing trend, by investigating three systematic spikes occurring between 2004 and 2016. The study aims to provide a useful review of the interaction of politics, financial decisions and educational outcomes. Additionally it provides a useful guide, especially to academics, to identify political and economic conceptualizations that will predict expenditure decision-making of political actors and to be able to provide policy advice on the future effect of such decisions on availability and accessibility of public goods.

Design/methodology/approach

The paper adopts a secondary data analysis approach, drawing upon secondary data sources such as from the Ministry of Education, budget statements from the Ministry of Finance, as well as relevant policy documents. Additional information for the study was also extracted from the manifestos of the two leading political parties in Ghana – the New Patriotic Party and the National Democratic Congress and their viewpoints on financing of education in Ghana.

Findings

Using two epochal years when financing of education peaked (2008 and 2012), which coincided with election years, the trend lends itself to being interpreted as opportunistic spending. It appears to give credence to a conclusion that the increases in spending are more politically directed and nonneutral.

Originality/value

This paper fulfills an identified need to study the trend of basic education financing in Ghana, which will help policy actors make better-informed decisions with the introduction of the novel “adaptive opportunism” framework analysis tool.

Details

International Journal of Educational Management, vol. 37 no. 2
Type: Research Article
ISSN: 0951-354X

Keywords

Expert briefing
Publication date: 25 June 2018

Last year’s Jakarta gubernatorial election saw sectarian tensions and mass protests. Indonesia’s presidential and legislative elections are due in April 2019. As in 2014…

Details

DOI: 10.1108/OXAN-DB235659

ISSN: 2633-304X

Keywords

Geographic
Topical
Expert briefing
Publication date: 26 November 2019

Peru has been shaken by scandals surrounding the illicit funding of political parties and their election campaigns by corporate interests. With election costs in the ascendant and…

Details

DOI: 10.1108/OXAN-DB248998

ISSN: 2633-304X

Keywords

Geographic
Topical
Book part
Publication date: 7 November 2022

April K. Clark and Kaylar Recker

Most Americans are keenly aware of the costs political corruption extracts on system support, fiscal policies and economic development, and ultimately, government effectiveness…

Abstract

Most Americans are keenly aware of the costs political corruption extracts on system support, fiscal policies and economic development, and ultimately, government effectiveness. Among a list of 10 challenges facing the nation, the public ranks political corruption as the nation's biggest crisis Samussen (2019). Importantly, this issue cuts across partisan and demographic lines. Members of both political parties and independents consistently cite political corruption as a serious problem facing the country.

However, there is a specific kind of political corruption that is disturbing for the health of American democracy – the corruption of Congress. Most Americans appear to have little faith in lawmakers to do the right thing. Majorities believe that Congress is out of touch with average Americans, focused on the needs of special interests, and is corrupt. To be sure, political corruption severely undermines government legitimacy and weakens the development of political, economic, and social structures. This chapter considers the problem of congressional corruption including what forms it takes, where it arises, what anti-corruption reforms are needed, and what these findings mean for the future of American democracy. More specifically, this chapter will permit us to examine if and how perceptions of congressional corruption influence citizens' interactions with government and provide a better understanding of citizens' policy preferences for regulating political corruption.

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